Using the Aging-Of-Accounts-Receivable Method to Estimate Uncollectible Receivables,CMU Corporation Estimates

question 142

Multiple Choice

Using the aging-of-accounts-receivable method to estimate uncollectible receivables,CMU Corporation estimates that $3,750 of its accounts receivable will be uncollectible.Prior to adjustment,the Allowance for Uncollectible Accounts has a credit balance of $600.Bad debt expense to be reported on the income statement is:

• A) $4,350
• B) $3,750
• C) $3,150
• D) $600

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Definitions:

Hyperventilates

Excessively rapid or deep breathing, which can lead to a decrease in carbon dioxide in the blood, causing lightheadedness or tingling of the limbs.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and absorbed by plants in photosynthesis.

Nasal Conchae

Curved bony structures within the nasal cavity that help filter, humidify, and warm air as it is inhaled.

Nasal Septum

The cartilage and bone wall that divides the nasal cavity into two nostrils, which can sometimes be deviated, causing breathing difficulty.